19 JULY 2024
Welcome to this week’s edition of Culture Wire, a newsletter brought to you by Singapore-based pop culture and lifestyle marketing agency Culture Group.
A quick note: Culture Wire will be undergoing a revamp in the coming weeks but fret not, readers will still get the latest pop culture updates in the region. The newsletter will now be biweekly, so readers can expect a deeper dive into our main story. Alongside that, regional round-ups will now be condensed into a quick reading list. And on weeks we’re not putting out the newsletter, we’ll be active on LinkedIn so make sure to give us a follow! Without further ado, dive in to this week’s Culture Wire 🚀
In this week’s edition:
- Innovation of the Week: HYROX and the pursuit of status
- Fax, No Printer: What percentage of Gen Z have a side hustle?
- Regional Round-up: A fortune cat, ‘I’ll buy that,’ K-pop chat… and more!
Innovation of the Week
🏃♂️READY TO ROX
Have you heard of HYROX? It’s a fitness event involving a 1 km race followed by a functional workout, repeated eight times. And it’s been gaining traction in Singapore – particularly amongst the Millennials. Hosted towards the end of June, this year’s Hyrox event attracted 6,500 participants (an 85% increase from last year’s 3,500 participants) with 73% of them being Millennials. Only 4% were aged 24 and under. And it seems like this is just the beginning – with the inaugural Singapore Fitness + Wellness Expo taking place at the end of August. What can Hyrox’s success tell us about the pursuit of status?
💡 OUR TAKE
Status and aspiration have been a cornerstone for consumer purchasing behavior but with traditional signifiers like home ownership 🏡 or marriage 👰♀️becoming less desirable among younger demographics and luxury taking on a more sustainable angle, what constitutes status is evolving among Millennials and Gen Z. Early this year, the Rich Couch Theory told us that a sure sign of wealth is if someone’s couch didn’t touch the wall because well, their living room was just that spacious they could afford to comfortably place them towards the center of the room.
For Singaporeans, they seemed to have latched onto products and experiences that enhance health and wellbeing – a sharp contrast from what their parents and the generations before considered success, the 5C’s (cash, car, credit card, condominium, and country club membership). Today, young Singaporeans dream of intangible goals like self mastery, purpose, the unbridled freedom to be themselves – and fitness seems to check these boxes.
While HYROX is particularly popular amongst Millennials, Gen Z is also racing (pun intended!) towards communal exercises, with running clubs trending up amongst this demographic globally. In Singapore, the inherent social nature of fitness communities act as key motivators to working out and staying fit. A study done for adidas revealed that the power of jio (colloquially used to mean ‘to ask someone out’) was more significant among Gen Zs than Millennials. Growing up perpetually online and digitally isolated, it makes sense that being part of an IRL community can be seen as a luxury for this cohort.
But it’s not just fitness-related products and experiences that are status signals on this side of the world. In recent years, the Philippines have seen an uptick in credit card applications among Gen Zs as they look to increase their spending on lifestyle related purchases such as shopping, travel, live music & etc. Despite the rising cost of living, while 63% of Gen X made the decision to cut back on discretionary spending in the past 3 months, only 41% of Filipino Gen Zs chose to do the same.
Meanwhile in Malaysia, home & living and fresh produce have entered the status category. Millennials and Gen Z are increasingly forgoing car ownerships (traditionally a rite of passage once you graduate) in exchange of the freedom to live away from home, closer to work and doing their own grocery shopping. (#livingalonediaries are all the rage on TikTok where creators share their monthly expenses that allows them to achieve this lifestyle).
All of this is to say, if you think your consumers’ basket size is decreasing – think again. They might just be choosing to spend it elsewhere. How can you as a brand, show up in these spaces meaningfully?
Fax, No Printer*
For those of you born before 1997, ‘fax, no printer‘ is Gen Z speak for ‘undeniable facts I agree with’
What percentage of Gen Z have a side hustle?
A. 32%
B. 45%
C. 80%
Scroll down to the end of the newsletter for the correct answer!
Regional Round-up
🐈 The ubiquitous maneki-neko, also known as the ‘fortune cat,’ has had an upgrade – payment provider NETS has turned them into a more convenient and playful solution for contactless payments. Over 10,000 NETS Tappy Cats will be distributed to select partner merchants in the coming weeks, with shoppers encouraged to tap the cat to pay. Time to look at an iconic cultural object through the lens of new consumer behaviors?
🎨 With shades of the Million Dollar Whopper contest, KFC challenged Filipino fans to use Meta’s AI sticker feature to design and share their dream snacks, with 11 cravings brought to life. How can you dial up your customization options with Gen AI? It could be a crave-tive way to learn about consumer preferences!
🛍️ Recent research from OMG Malaysia revealed an interesting paradox: although 57% plan to be more cautious with their money over the next six months they are still interested in rewarding or indulgences, with lower-income shoppers hoping this will uplift their spirits or alleviate stress. Beyond the why, the how is interesting too. Shopee, TikTok Shop, TikTok Live, and Shopee Live are gaining popularity. As social commerce continues to reshape the retail landscape, how do you need to adapt? When and where are shoppers discovering brands, and how does that impact purchase intent?
⚽ Soccer fans in Indonesia seem particularly receptive to sponsorship of sporting events, with 50% aware of event sponsors and over half (57%) would support their teams by buying products from their sponsors. But there’s a real market differentiation here, with fans in Singapore significantly less aware and receptive. So, while event sponsorship remains a viable option in some markets, our advice would be to carefully consider local preferences and nuances before defaulting to a tried-and-tested formula.
⚠️ ICYMI: With global spending on Korean cultural products forecast to nearly double, reaching US$143B by 2030, high-profile media institutions in the US and the UK are keen to get involved. The GRAMMY Museum will partner with HYBE on a K-pop exhibit while the BBC and SM Entertainment will debut a new reality series, Made in Korea: The K-pop Experience. Could the craving for Korean culture set the scene for global interest in T-Wave and P-Pop? And how might you take advantage of that?
This Week's Trivia Answer
B. 45%
Hustlin’ is on the rise: according to new research from Visa, 45% of Gen Z have a side hustle, with over a third (37%) having more than one. The main goal? Earning extra income! And it’s very likely that income is used to top up the culture wallet and (partially) fund the memorable and meaningful experiences we discussed in this newsletter’s main story. One interesting learning here: Gen Z is often so invested in their passion points they are getting creative about ways to make money. They will appreciate the brands that support and acknowledge their efforts.
Not all side hustlers are money-motivated. The survey also found that 27% begin their venture as a way to explore a passion, and identified ‘soul traders’ – the 79% of side hustles that are driven by passion and personal interests. If you’re already engaging with fan communities, have you considered encouraging them to take their passions to the next level? What skills might they need to turn passion into profit?
🚀 Over and Out!
Culture Wire will return on August 2. Till then, you know the drill. Subscribe, forward this on, or share the love on social media. Thanks for reading!
Your Culture Mavens,
Angela, Catherine, Teri, Twila, & Vicki
